Introduction
Over the past several years, the traditional thinking of distribution center design and strategy in North America has begun to evolve from a ‘low and wide’ strategy to ‘narrow and high’. One of the key variables in this switch in thinking is Mini-Load Automated Storage and Retrieval (AS/RS). Once thought to be too expensive with a ROI in double digit years, AS/RS solutions are bringing much faster ROI (2 years or less) and offering many advantages over traditional distribution. Here are 11 reasons why you should consider a mini-load AS/RS.
1. Labor Productivity – Less gets you more
With labor costs representing as much as 50% or more of the operating budget of a distribution cen ter, one of the biggest ways to reduce costs is to reduce labor. Combined with the fact that securing good, skilled labor is sometimes difficult makes automated storage via a mini-load an effective strategy. Automated storage with a mini-load system can eliminate manual replenishment and complex slotting, improve productivity of the pick, and reduce consolidation costs. A key difference of mini-load picking is the fact that you are bringing the product to the worker (often called “goods-to-person”). This is the opposite of having the workers walk or drive to the product. By reducing or eliminating the replenishment and improving the picking productivity by 200%-500%, one can quickly see why mini-loads appeal to many industries. As companies continue to develop lean strategies, mini-load technology assists in removing non-value added processes.
2. Space – Up and not out
Because an AS/RS removes ‘dead space’ in a facility and uses very high density storage and fully utilizes the vertical space in a DC, the ‘footprint’ needed for storage can be drastically decreased. This can have a significant impact on the initial cost of a project whether you are leasing, buying, or building a new facility. In many instances the decreased footprint requirement alone can justify an AS/RS solution. Often building footprints can be reduced by as much as 40% in an AS/RS solution relative to a more manual material handling solution. In existing buildings, an AS/RS solution can still bring value, as the AS/RS offers increased capacity compared to more manual material handling solutions. This is often attractive in situations where facilities are land-locked and can’t expand outward.
3. Mobile Material Handling Equipment – Fork truck traffic decreases
As the AS/RS performs most of the “travel” necessary to put away and retrieve products, the need for mobile material handling equipment such as fork trucks can be greatly reduced or almost eliminated altogether. If fork trucks are eliminated, so are battery costs, maintenance personnel, maintenance training, and floor space for them. The danger of mixing people and equipment in a common travel aisle is also eliminated.
4. Seasonality/Re-slotting – Keep product close by
Some industries have significant swings in SKU movement based on product seasonality. The most common solutions either require workers to travel past all the SKUs all the time, or they must reslot the pick environment frequently based on projected demand by season. With a mini-load, the crane handles retrieving product from anywhere in the rack without impacting the labor productivity at the workstation or replenished pick face. In addition, the cranes can work off-shift to relocate product based on upcoming demands to ensure optimized movements during the pick hours.
5. Inventory Accuracy – Less touches means more accuracy
Many companies are finding it imperative to have accurate inventory information to be able to conduct timely replenishment operations and fill orders without “short” picks. The more touch points a product has with workers, the more likely an error can occur. Mini-loads reduce the number of touches and improve inventory accuracy as the system knows where it put the product each time, every time. In addition, there is the added benefit that product can be pulled from any location at any time.
6. Order Accuracy – Pick only what you need to
In an automated goods-to-person environment the required SKU tote is delivered to the worker, scanned for verification, and very often guided by the WMS/WCS and an automated put/pick solution (such as voice or lights) for performing the picking operations. In this solution the SKU tote is delivered to the picker and presented to the operator ONLY when there is a requirement for that particular SKU. The possibility of inaccurate picks is further reduced when picks are verified via an optional hand-held RF scanner or voice system. If incorrect picks are made (quantity, item, etc), the electronic paper trail from scanning allows for
effective tracking of worker activity and for improved employee training.
7. Ergonomics / Worker Safety – Bring the work to the worker the right way
Many companies talk about slotting their product in the “golden zone” for picking. In other words, placing the fastest moving product near the ideal ergonomic pick height to reduce the overall stress to the worker over the course of a shift. Mini-loads can either bring products to an ergonomically-designed work station so that every pick is at the ideal height, or they can dynamically slot product into a “golden zone” slot for module picking. In either case, the worker experiences less ergonomic stress.
8. Product Security / Safety – It’s safe, secure…and tracked
With automated storage and retrieval, product is stored in a secure, fenced-in area around the AS/RS. The only way product is delivered is via electronic pick commands through a WMS/WCS solution. Pick commands to the AS/RS system automatically track the SKU totes from storage location to a goods-to-person picking workstation, and back to the AS/RS inventory after completion of the pick. This gives 99% or more traceability in the solution. Adding enclosed picking workstations for high-value goods can further increase the level of security. Product is also safer with an AS/RS because of the reduced need for fork trucks moving product (and potentially damaging the product or the facility) and the fewer touches on the product. Every time a worker touches the product, an opportunity is created for product damage or loss.
Reducing product touches with an AS/RS reduces product damage.
9. Worker Training / Turnover – Less workers, but more productivity
Worker retention is an important factor and many companies lose workers to any number of factors (better pay elsewhere, work is too demanding, work environment conditions, safety, etc.). Every time a worker leaves, companies experience rehiring and retraining costs. In addition, there is typically a learning curve after training is complete before the new worker is operating at full capacity. With an AS/RS solution, most of the work is automated, reducing the need to use manual labor. In addition, most workers can be trained much more quickly as the tasks that must be performed are simpler. The AS/RS can work as long as needed and doesn’t need breaks or vacations. In cold storage environments, the AS/RS can work 24/7, while the workers stay in ambient temperature areas.
10. Redundancy / Work Balance – Balance the work
The AS/RS places the same unique SKU into multiple totes spread across multiple aisles of the AS/RS, creating a highly redundant solution. This allows the WCS/WMS solution to choose the required SKU tote from multiple locations based on congestion within each aisle and quantity of available product in the SKU tote. This allows the WCS/WMS more options for delivering the correct tote to the workers during picking operations providing a balanced workload to them throughout the picking cycle.
11. Sustainability – It all adds up to savings
An AS/RS can easily be part of your company’s overall ‘green’ strategy and initiatives. Reducing your facility’s footprint, means less building materials and less overall area to heat/cool and light so your energy bill is reduced. Less employees due to the automation of workload from the AS/RS means fewer cars and less parking.
Summary
There are many reasons to consider a mini-load AS/RS. Many times payback can be justified in less than two years, which means that not only is money flowing back into your pocket in the years to come, but many of the headaches noted above are resolved in the process.
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